Longmont City Council to take up mall vote Friday

Posted:
07/09/2014 06:42:55 PM MDT

Updated:
07/10/2014 09:34:06 AM MDT

The Longmont City Council will convene at 9 a.m. Friday to vote on the development and financing plan for Twin Peaks Mall. The plan allows the city to put up to $27.5 million into the mall's $89 million redevelopment, so long as the mall's owners have their private financing together by July 14.

The city's share would come from a Certificate of Participation that uses city buildings as collateral for a debt: in this case, the library, the civic center, the development services center and the safety and justice center. Finance director Jim Golden said the buildings would be sold to a trustee, who would hold them as collateral, and then repurchased by the city over the next 23 years in "lease-type payments" as the debt is repaid.

The COPs are expected to bring about $31 million, covering Longmont's share of the project, interest, and other costs to date. Repayment would come from the additional sales and property tax generated by the new mall and by a mill levy the mall will place on itself.

If those revenues fall short, Golden said, the city would have to find another way to make the payments, likely from the general fund or the public improvement fund.

Projections in 2013 showed that the city expected to take in $92 million of revenue from the redeveloped mall over 25 years, not counting the amount needed to repay the debt.

The vote had been scheduled for Tuesday but was postponed due to the absence of Mayor Dennis Coombs. The meeting recessed to Friday and will continue at the council chambers, 350 Kimbark St.